Optical interconnects: which startup is ahead?
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SUMMARY
Ayar Labs is currently ahead in optical interconnects, with Lightmatter close behind and Ranovus a credible third.
The lead is commercial rather than purely technical. Lightmatter owns the largest single-platform bandwidth figure, but Ayar asks chip designers to change less and has connected its optical chiplets to accelerator designs, packaging partners and complete AI racks.
The gap between the top two is small. Ayar and Lightmatter have each raised about $850 million, joined Nvidia’s NVLink Fusion ecosystem and built manufacturing networks strong enough to support volume production.
Lightmatter could still become the more important architecture. Its Passage platform turns the photonic interconnect into part of the package itself, but that ambition also makes adoption more demanding than adding Ayar’s modular UCIe chiplets beside an existing processor.
Ranovus is the strongest challenger on deployment readiness. Its 6.4 Tbps ODIN engine integrates electronics, photonics and a laser, while Jabil provides a realistic route toward mass production.
The most disruptive technology may come from Avicena, not the best-funded companies. Its microLED links could remove lasers, modulators and wavelength-control components from short connections, although the published 80 fJ/bit result covers only the transmitter rather than a complete link.
The smaller laser specialists are not merely distant competitors. Xscape, SCINTIL and Quintessent could become suppliers to several rival optical platforms, which may give them a cleaner business model than trying to own the full interconnect stack.
Customer evidence remains thin across the whole market. Ayar has the broadest route to customers through Alchip, GUC and Wiwynn, while Ranovus has the clearest named project through its DARPA-backed work with Cerebras.
Celestial AI’s sale to Marvell shows how valuable optical scale-up technology can become before meaningful revenue arrives. It also shows the likely outcome for several startups: supplying incumbents, partnering deeply with them or being acquired.
The ranking can still change quickly. A major Passage production customer would put Lightmatter in first place, substantial ODIN shipments would strengthen Ranovus, and a multi-terabit complete microLED link would move Avicena much closer to the leaders.
This market map, featured in our semiconductor industry deck, highlights top companies and startups in the semiconductor industry
Which optical interconnect startups actually matter right now?
The serious optical interconnect startup field currently has eight independent contenders, with Ayar Labs and Lightmatter clearly separated from the rest.
We define optical interconnect startups as companies developing technology to move data between AI accelerators, switches, memory systems, boards or racks using light. This includes optical I/O chiplets, co-packaged and near-packaged optical engines, integrated laser sources and optical circuit switches built specifically for AI infrastructure.
We exclude large public suppliers such as Broadcom, Marvell, Coherent, Lumentum and Ciena. We also leave out conventional transceiver manufacturers, telecom equipment companies, lidar developers, quantum-photonics businesses and startups mainly building photonic processors rather than connections between processors.
Ayar Labs and Lightmatter form the top group. Each has raised about $850 million, while no other independent company in this comparison has publicly raised much more than $120 million.
Ranovus leads the next group. Its integrated ODIN engine, manufacturing agreement with Jabil and work with Cerebras put it ahead of several better-publicized startups on deployment readiness.
Avicena is pursuing microLEDs rather than conventional laser-and-modulator systems. Xscape Photonics, SCINTIL Photonics and Quintessent focus mainly on the lasers that provide multiple wavelengths of light. Salience Labs operates one layer higher, using silicon photonics to switch optical traffic between computing systems.
Celestial AI and Nubis Communications remain useful benchmarks even though they are no longer independent. Marvell acquired Celestial, while Ciena bought Nubis.
Funding totals are approximate. Private companies disclose grants, extensions and strategic investments unevenly, so small differences should not be treated as exact rankings.
| Startup | What it is building | Approximate capital raised | Where it stands |
|---|---|---|---|
| Ayar Labs | Optical I/O chiplets and remote light sources | $870 million | Preparing for volume production |
| Lightmatter | Photonic interposers, optical engines and laser systems | $850 million | Broad product portfolio, early customer deployment |
| Avicena | MicroLED optical interconnects | About $120 million | Customer evaluation stage |
| Xscape Photonics | Multi-wavelength comb lasers | About $94 million | First commercial laser module launched |
| SCINTIL Photonics | Integrated DWDM laser sources | About $77 million | Evaluation kits and foundry-qualified production path |
| Ranovus | Integrated CPO and NPO optical engines | About $70 million disclosed | Moving toward mass production |
| Salience Labs | Optical circuit switches | About $45 million | First 32-port product launched |
| Quintessent | Quantum-dot lasers for silicon photonics | About $12 million | Early product and supply-chain development |
| Celestial AI | Photonic Fabric optical chiplets | At least $515 million before acquisition | Acquired by Marvell |
| Nubis Communications | Compact optical engines | About $50 million before acquisition | Acquired by Ciena |
Is Lightmatter’s bigger bandwidth enough to beat Ayar Labs?
No. Lightmatter owns the biggest headline bandwidth number in optical interconnects, but Ayar Labs remains slightly ahead because its modular chiplet is easier to adopt and further along commercially.
Funding barely separates them. Ayar has raised $870 million and Lightmatter $850 million, a gap of roughly 2%. Lightmatter’s last disclosed valuation was $4.4 billion, compared with $3.75 billion for Ayar, although those valuations were set at different times.
Lightmatter wants photonics to become part of the package itself. Its Passage M1000 is a 4,000-square-millimetre photonic interposer offering 114 Tbps of total bandwidth, 256 fiber connections and built-in optical switching.
Ayar sells an 8 Tbps optical I/O chiplet that can sit beside an accelerator or switch. Several TeraPHY engines can surround the same processor, and the architecture shown with Alchip exceeds 100 Tbps per compute package.
Lightmatter leads the single-platform benchmark, while Ayar reaches nearly the same package-level range through smaller building blocks. Ayar’s UCIe interface also lets accelerator designers add optical links without rebuilding the whole package around one photonic platform.
Both companies have joined Nvidia’s NVLink Fusion program, so neither has an exclusive advantage there.
Ayar currently asks customers to change less. Lightmatter could move ahead quickly if a major accelerator company or hyperscaler puts Passage into production.
| Company and product | What the figure measures | Disclosed bandwidth | How to read it |
|---|---|---|---|
| Lightmatter Passage M1000 | Complete photonic interposer | 114 Tbps | Largest platform-level figure |
| Ayar Labs with Alchip | Complete accelerator design | More than 100 Tbps | Uses several optical chiplets |
| Celestial AI Photonic Fabric | One optical chiplet | 16 Tbps | Now owned by Marvell |
| Ayar Labs TeraPHY | One optical I/O chiplet | 8 Tbps | Modular building block |
| Ranovus ODIN | Integrated CPO engine | 6.4 Tbps | Includes an integrated laser |
| Avicena LightBundle eKit | Evaluation link | 512 Gbps | Early microLED platform |
If you want more recent data on this point, please see our latest semiconductor industry report.
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Which optical interconnect startup has found real customers?
Ayar Labs has the best evidence of customer pull in optical interconnects, while Ranovus has the clearest named deployment project.
No independent startup in this comparison discloses optical-interconnect revenue, shipment volume, backlog or a list of paying production customers. None has publicly proved a large commercial business.
Ayar works with Alchip and GUC, which design custom accelerators and switches for cloud companies. Its partnership with Wiwynn extends that work into complete liquid-cooled AI racks.
These relationships cover nearly the whole path from chip design to rack delivery. They still do not prove volume orders, but they are more useful than isolated technical partnerships.
Ranovus has fewer public relationships, though its Cerebras project is unusually concrete. The companies are working on a DARPA-backed system connecting wafer-scale processors with wafer-scale co-packaged optics.
Lightmatter has strong fabrication and packaging partners, including GlobalFoundries, Amkor, ASE and GUC. Cadence and Synopsys support the interfaces customers need to connect Passage to their chips. Lightmatter has not publicly named a hyperscaler or accelerator company committed to production.
Celestial AI had the strongest customer claims before Marvell acquired it. Marvell said several hyperscalers were working with the technology, but meaningful revenue was still expected later.
Ayar leads because its route to customers is broader. Ranovus has the strongest single named project.
Which optical interconnect startup is closest to production at scale?
Ayar Labs is currently closest to large-scale production, with Ranovus second and Lightmatter third.
Ayar’s TeraPHY engine has progressed beyond a standalone photonics demonstration. The company has tested several chiplet generations, connected them through UCIe and placed them inside complete accelerator and switch designs.
The Alchip architecture combines optical engines, protocol conversion, electrical interfaces, detachable fiber connections and advanced packaging. Ayar has also reported thermal testing designed for the harsh conditions beside high-power AI processors.
Its latest $500 million round is intended to expand production and testing rather than fund another basic technology demonstration. The company has also built operations in Taiwan, close to the advanced semiconductor-packaging supply chain.
Wiwynn gives Ayar a route from the chip package to the finished rack. The manufacturer says it has shipped general and AI servers to more than 750 data centers.
Ranovus has demonstrated a 6.4 Tbps ODIN engine with an integrated laser and engaged Jabil to support mass production. It is also expanding its Ottawa operations through an investment of more than $100 million, expected to create 125 jobs.
Lightmatter may have the broadest manufacturing network. GlobalFoundries can fabricate photonic devices, Amkor and ASE handle advanced assembly, and GUC supports custom semiconductor designs.
Its vClick system also makes fiber connections detachable, which simplifies testing and servicing. Several newer Lightmatter products, however, remain in evaluation or early-access programs.
Ayar stays ahead because its technical validation, production spending and rack-level partnership already connect to one another. Ranovus has made the strongest physical manufacturing commitment relative to its size.
This chart, featured in our semiconductor industry deck, shows annual venture capital investment in semiconductor startups
Which optical interconnect startup uses the least power?
Avicena has the most exciting low-power result in optical interconnects, while Ranovus has published the cleaner full-engine measurement.
Avicena reported transmitter consumption of 80 femtojoules per bit for its microLED arrays. Ranovus reported roughly 4 picojoules per bit for its 6.4 Tbps ODIN implementation, including the laser.
Avicena’s figure is 50 times lower, but the measurements cover different parts of the link. Its number applies to the transmitter, while a working connection also needs photodetectors, receiver electronics, control systems and fiber coupling.
Ranovus measures far more of the finished optical engine. Its result is less dramatic but easier to connect to real system power.
Avicena sends data directly from arrays of tiny LEDs into a multicore fiber bundle. Conventional silicon photonics generally begins with a laser and uses modulators to encode the data.
Removing separate lasers, modulators and wavelength-control components could cut power and simplify short links. Avicena’s 512 Gbps LightBundle evaluation kit now lets customers test that approach outside its laboratory.
Ayar and Lightmatter publish broader efficiency claims, though their system boundaries and workload assumptions differ too much for a fair comparison.
Avicena leads on technical potential. Ranovus has the strongest disclosed result for a more complete optical engine.
If you want more recent data on this point, please see our latest semiconductor industry report.
Which optical interconnect startup has the strongest moat?
Lightmatter has the hardest optical interconnect architecture to copy, while Ayar Labs has built the stronger moat around customer adoption.
Lightmatter’s Passage platform combines photonics, packaging, power delivery, thermal design, fiber attachment and optical switching inside one large structure. A competitor would need expertise across all those areas and support from several foundry and packaging partners.
Its multi-reticle interposer is especially difficult to reproduce. Lightmatter has developed ways to move optical traffic across separate photonic tiles while placing large compute dies above them.
Ayar’s individual components may be easier to understand, but the surrounding system is becoming harder to match. TeraPHY combines UCIe, dense wavelength multiplexing, microring modulators and a remote light source.
Ayar then adds reference designs with ASIC companies, packaging suppliers and rack manufacturers. A competing modulator alone would not recreate that integration work.
Avicena has the most distinctive underlying technology. Its microLED approach changes the emitter, receiver, fiber and packaging together, so a conventional silicon-photonics company cannot copy it through a minor process update.
Xscape, SCINTIL and Quintessent have narrower laser moats. They could become important suppliers across several competing optical platforms without controlling the whole interconnect stack.
Lightmatter wins on technical difficulty. Ayar’s advantage is currently easier for customers to use.
This chart, featured in our semiconductor industry deck, looks at TSMC’s strategy in semiconductors
Which optical interconnect startup is gaining ground fastest now?
Ayar Labs has the strongest deployment momentum, while Lightmatter has released the most products and Xscape is moving fastest among the smaller specialists.
Lightmatter has expanded into near-package optical engines, detachable fiber systems and external laser products. It has also demonstrated 1.6 Tbps over one fiber and joined Nvidia’s NVLink Fusion program.
That pace shows technical depth, although Lightmatter now has several product families to industrialize at once.
Ayar’s progress has been more concentrated. Its work with Wiwynn connects optical engines and remote lasers to a complete liquid-cooled rack, while NVLink Fusion opens another route into custom AI systems.
Xscape added $37 million in funding and launched FalconX, an external module producing as many as eight wavelengths. The product followed an earlier sixteen-wavelength demonstration.
SCINTIL has also entered customer evaluation. Its LEAF Light kit provides access to a single-chip DWDM laser source, and Tower Semiconductor has validated the company’s process.
Salience Labs introduced its 32-port OC-32M optical switch, named Tower as its manufacturing partner and worked with Keysight on testing.
Avicena’s LightBundle kit is another meaningful step because customers can now evaluate microLED links in their own systems.
Ayar has the best deployment momentum. Lightmatter has the fastest product-development pace, while Xscape is making the clearest jump from specialist prototype to sellable module.
If you want more recent data on this point, please see our latest semiconductor industry report.
Did Celestial AI already win the optical interconnect race by selling to Marvell?
Celestial AI won the optical interconnect exit race, but Marvell’s revenue timetable shows that the technology had not reached volume sales.
Marvell agreed to pay about $3.25 billion upfront for Celestial AI. Additional payments could push the value above $5 billion if the business reaches specific revenue targets.
Celestial had raised at least $515 million and developed a Photonic Fabric chiplet offering 16 Tbps. Marvell said several hyperscalers and other companies were already working with the technology.
When it announced the acquisition, Marvell expected Celestial’s first meaningful revenue contribution during its 2028 fiscal year. It projected a $500 million annualized run rate near the end of that year and $1 billion near the end of the following one.
The performance-based payments reflect the remaining commercial risk. Customer designs still need to become products and then reach volume.
Nubis provides a smaller comparison. Ciena acquired the company after it developed compact 1.6 Tbps optical engines and has since introduced a 6.4 Tbps product based on Nubis technology.
Celestial’s sale proves that optical scale-up technology can command a multibillion-dollar price before large revenue appears. It does not prove that Celestial had already beaten Ayar or Lightmatter in commercial shipments.
This chart, featured in our semiconductor industry deck, shows annual funding in semiconductor startups
Can optical interconnect startups survive Nvidia, Broadcom and Marvell?
Optical interconnect startups can survive Nvidia, Broadcom and Marvell, but most will do so as suppliers or acquisition targets rather than full-stack giants.
Large semiconductor companies already control many of the chips, lasers, foundries and customer relationships needed to bring optical interconnects into AI systems.
Nvidia sells co-packaged optical networking products and has opened NVLink Fusion to outside chip designers. Ayar and Lightmatter have both joined that program.
Broadcom already ships high-volume networking silicon and has years of silicon-photonics experience. Marvell now combines custom AI chips, networking products and Celestial AI’s Photonic Fabric.
Ciena followed the same path by acquiring Nubis and using its technology inside compact optical products for AI data centers.
Startups still have room where new technology moves faster than the incumbents’ internal roadmaps. Celestial and Nubis were acquired because larger companies wanted technology they did not already have.
Ayar can remain independent by supplying chiplets across several processor architectures. Ranovus can operate as a specialized optical-engine supplier. Xscape, SCINTIL and Quintessent can sell lasers across competing platforms.
Startups relying on one impressive demonstration are more exposed. Those already connected to foundries, packaging companies and AI-chip programs have a realistic place in the market.
If you want more recent data on this point, please see our latest semiconductor industry report.
Who leads each optical interconnect segment today?
Optical interconnects currently have several specialist leaders, but Ayar Labs is the only independent startup near the front across most of the stack.
Ayar leads modular optical I/O for accelerators and switches. Lightmatter leads in large photonic interposers. Ranovus has the strongest position in tightly integrated optical engines containing electronics, photonics and laser technology.
Avicena effectively owns the funded microLED-interconnect category. Xscape and SCINTIL lead different approaches to producing several laser wavelengths, while Quintessent remains an earlier challenger using quantum-dot materials.
Salience leads optical switching among the startups in this comparison. Its product routes light between systems rather than providing the connection leaving the processor package.
These companies will not always compete directly. A future AI rack could combine an Ayar optical engine, a Xscape or SCINTIL light source and a Salience optical switch.
| Optical interconnect segment | Current leader | Closest challenger | Why the leader is ahead |
|---|---|---|---|
| Modular optical I/O chiplets | Ayar Labs | Celestial technology inside Marvell | Strongest mix of maturity, standard interfaces and integration work |
| Photonic interposers | Lightmatter | No close independent equivalent | Largest and most advanced 3D photonic package |
| Integrated CPO and NPO engines | Ranovus | Nubis technology inside Ciena | Integrated laser and electronics with a mass-production partner |
| MicroLED optical links | Avicena | No direct funded equivalent | Distinct architecture and exceptionally low transmitter power |
| Comb-laser modules | Xscape Photonics | Quintessent | First eight-wavelength commercial module |
| Integrated DWDM lasers | SCINTIL Photonics | Quintessent | Foundry-qualified process and customer evaluation kit |
| Optical circuit switches | Salience Labs | Large incumbent systems | Launched 32-port product with manufacturing and testing partners |
| Full Photonic Fabric platform | Celestial technology inside Marvell | Ayar Labs and Lightmatter | Strong hyperscaler interest and multibillion-dollar strategic validation |
This chart, featured in our semiconductor industry deck, compares the main business model options for fabless semiconductor companies
Which optical interconnect startup is actually ahead?
Ayar Labs is currently the optical interconnect startup ahead overall, with Lightmatter close behind and Ranovus in third place.
Ayar takes first place because it combines a mature optical engine, a standard electrical interface, complete accelerator designs, a rack-manufacturing partner and fresh investment in production capacity.
The company still has not disclosed large shipment volumes. Neither has anyone else. Based on the evidence available today, Ayar has moved furthest from a photonics demonstration toward something a chip or server company could deploy.
Lightmatter comes second. Its package-level performance is stronger and its architecture may eventually prove more important. A named hyperscaler or accelerator company putting Passage into production could move Lightmatter into first place.
Ranovus takes third. Its funding is far below that of the top two, yet it has demonstrated a 6.4 Tbps integrated engine, secured a manufacturing agreement with Jabil and joined a named Cerebras project.
Avicena ranks fourth because microLEDs could change the power and cost structure of short optical links. Customer evaluation has started, but bandwidth and system maturity remain behind the first three companies.
Xscape takes fifth as the strongest smaller specialist. FalconX gives the company a product that could sell across several optical architectures.
SCINTIL follows closely with integrated DWDM technology, a Tower manufacturing path and a customer evaluation program.
Salience ranks seventh because its optical switch sits in a different part of the network from the optical I/O attached to an accelerator.
Quintessent ranks eighth. Its quantum-dot laser technology could become valuable, but the company remains less funded and less commercially advanced than Xscape or SCINTIL.
The ranking would change quickly if Lightmatter disclosed a major production customer, if Ranovus showed substantial ODIN shipments, or if Avicena demonstrated a complete microLED link at multi-terabit bandwidth.
The current gap between Ayar and Lightmatter is real but small. Ayar leads by one stage of commercialization, not by a generation of technology.
| Rank | Startup | Why it ranks here |
|---|---|---|
| 1 | Ayar Labs | Best overall mix of maturity, integration, manufacturing preparation and customer access |
| 2 | Lightmatter | Strongest architecture and performance, with less public evidence of production adoption |
| 3 | Ranovus | Serious manufacturing progress and named deployment work despite much lower funding |
| 4 | Avicena | Most disruptive low-power architecture, still at customer-evaluation maturity |
| 5 | Xscape Photonics | Fast-moving multi-wavelength laser specialist with a launched product |
| 6 | SCINTIL Photonics | Foundry-qualified DWDM laser technology and a credible evaluation path |
| 7 | Salience Labs | Strong optical-switching progress in an adjacent part of the interconnect stack |
| 8 | Quintessent | Promising quantum-dot technology at an earlier commercial stage |
If you want more recent data on this point, please see our latest semiconductor industry report.
OUR METHODOLOGY
This analysis compares the independent optical interconnect startups moving data between AI accelerators, switches, memory systems, boards and racks. We assess technical performance, customer traction, production readiness, power efficiency, defensibility, recent momentum and strategic position.
We give the most weight to evidence that moves a technology closer to real deployment: complete system integrations, customer evaluation programs, manufacturing agreements, production investment, ecosystem access and named projects. Funding and valuation help show market confidence, but they do not decide the ranking.
Technical figures are compared according to what they actually measure. A full photonic interposer, one optical I/O chiplet, an evaluation link and a transmitter-only power result describe different system boundaries, so their headline numbers are not treated as directly interchangeable.
The final ranking combines these dimensions rather than rewarding the company with the largest bandwidth claim or the most capital. Ayar ranks first because its technology, packaging work, manufacturing preparation and route into complete AI systems currently fit together more convincingly than the alternatives.
Key sources include Ayar Labs on TeraPHY, Ayar Labs on its 8 Tbps UCIe chiplet, Lightmatter on Passage M1000, Nvidia on NVLink Fusion, Ranovus on its Jabil manufacturing collaboration, Avicena’s microLED disclosures, Xscape Photonics on FalconX, SCINTIL on its LEAF Light evaluation kit, Salience Labs on the OC-32M switch, Marvell on the Celestial AI acquisition, and Ciena on its post-Nubis 6.4 Tbps product.
This chart, featured in our semiconductor industry deck, shows the revenue mix across customer segments in the semiconductor industry
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